Canada's international investment position, third quarter 2025
Released: 2025-12-10
$1,925.8 billion
Third quarter 2025
Canada's net foreign asset position, the difference between Canada's international financial assets and international liabilities, increased by $95.3 billion to $1,925.8 billion at the end of the third quarter, following two consecutive quarters of decline. Overall, the upward revaluation from fluctuations in exchange rates and, to a lesser extent, the upward revaluation due to market price changes contributed to the increase. In the third quarter, Canada's international assets and liabilities both grew significantly, driven by the rise in equity and debt instrument prices.
Chart 1
Canada's net international investment position
The revaluation effect from fluctuations in exchange rates (+$106.3 billion) led the overall increase in Canada's net foreign asset position in the third quarter. Over the quarter, the Canadian dollar depreciated against the US dollar (-2.0%) and the euro (-1.8%) but appreciated against the Japanese yen (+1.0%). At the end of the third quarter, 97.0% of Canada's international assets were denominated in foreign currencies (67.3% in US dollars) compared with 37.0% of its international liabilities (26.6% in US dollars).
The upward revaluation due to market price changes added $16.7 billion to Canada's net foreign asset position in the third quarter. Major foreign stock markets posted a strong performance, with the US stock market (+7.8%), the European stock market (+4.3%) and the Japanese stock market (+11.0%) all appreciating during the quarter. Meanwhile, the Canadian stock market grew by 11.8%, the largest increase since the second quarter of 2020. At the end of the third quarter of 2025, 69.0% of Canada's international assets and 47.6% of its international liabilities were held in the form of equities.
In the third quarter, funds borrowed from abroad to finance the current account deficit moderated the overall increase in Canada's net foreign asset position.
Chart 2
Contributors to the change in the net international investment position
Rising market prices boost both international assets and liabilities
Canada's international financial assets were up by $690.0 billion (+6.6%) to $11,204.5 billion at the end of the third quarter, the highest quarterly increase on record. The substantial upward revaluation attributable to market price changes (+$448.8 billion) led the growth. The effect of exchange rate fluctuations (+$153.3 billion) and sizable acquisitions of foreign assets (+$100.0 billion) also contributed to the growth.
On the other side of the ledger, Canada's international liabilities amounted to $9,278.7 billion at the end of the third quarter, an increase of $594.7 billion (+6.8%) from the previous quarter. This increase was primarily the result of a significant upward revaluation due to fluctuations in market prices (+$432.1 billion), notably portfolio shares of the energy and mining sector. Foreign borrowing activity (+$106.3 billion), mainly in the form of debt securities, and revaluation from exchange rate movements (+$47.1 billion) also contributed to the increase over that period.
Chart 3
Canada's international assets and liabilities
Chart 4
Canada's net international investment position, by region
Canada's gross external debt increases
Canada's gross external debt, or the value of Canadian debt instruments held by foreign investors, increased by $139.3 billion (+3.1%) to reach $4,676.0 billion at the end of the third quarter. Canada's gross external debt represented 143.6% of the gross domestic product, up from 141.4% in the previous quarter.
On a sector basis, the gross external debt of the government sector increased by $51.2 billion to $902.0 billion at the end of the third quarter, the largest quarterly increase since the second quarter of 2024. The growth was driven by foreign acquisitions of debt securities. Since the end of 2019, the gross external debt of the government sector has grown by $430.7 billion, nearly doubling its pre-COVID-19 pandemic level. The gross external debt of the financial sector stood at $2,752.1 billion by the end of the third quarter of 2025 and represented the highest proportion of Canada's gross external debt at the end of September.
Chart 5
Canada's gross external debt as a percentage of gross domestic product
Note to readers
Revisions
This release incorporates statistical revisions back to 2022 as part of the annual revision exercise of the Canadian System of Macroeconomic Accounts. Revisions reflect the integration of benchmark survey data and new data sources as well as enhanced methodologies increasing the quality of the data published.
Definitions
The international investment position is the value and composition of Canada's assets and liabilities to the rest of the world.
Canada's net international investment position is the difference between Canada's assets and liabilities to the rest of the world. An excess of international liabilities over international assets can be referred to as Canada's net foreign debt. An excess of international assets over international liabilities can be referred to as Canada's net foreign assets.
Foreign direct investment is presented on an asset-liability principle basis (that is, a gross basis) in the international investment position. Foreign direct investment can also be presented on a directional principle basis (that is, a net basis), as shown in supplementary foreign direct investment tables 36-10-0008-01, 36-10-0009-01 and 36-10-0659-01. The difference between the two foreign direct investment conceptual presentations resides in the classification of reverse investment, such as (1) Canadian affiliates' claims on foreign parents and (2) Canadian parents' liabilities to foreign affiliates. Under the asset-liability presentation, (1) is classified as an asset and included in direct investment assets, and (2) is classified as a liability and included in direct investment liabilities.
Next release
International investment position data for the fourth quarter of 2025 will be released on March 13, 2026.
Products
The International trade statistics portal is available on the Statistics Canada website.
The updated Canada and the World Statistics Hub (13-609-X) is available online. This product illustrates the nature and extent of Canada's economic and financial relationship with the world using interactive charts and tables. It provides easy access to information on trade, investment, employment and travel between Canada and a number of countries, including the United States, Mexico, China, Japan, Belgium, Italy, the Netherlands and Spain.
The Canada's international trade and investment country fact sheet (71-607-X) is also available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is available.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is also available.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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